A travel credit card can be a great way for you to enjoy more of your travel on a day-to-day basis. Especially if you already travel regularly, you may be able to get a travel credit card in order to travel the same amount and pay less. However, if you’re interested in getting a travel credit card, you’ll also want to get the best benefits from your credit card.
Here are four things you should look at when you’re comparing and contrasting different cards.
- Annual Fee
Most people know that the annual fee is a big part of a travel credit card. Most travel credit cards have some annual fee, although there are a few that may not have a fee at all. If you’re interested in getting the best discounts and deals from your card, you’re likely going to have to go with a credit card that has some annual fee. Make sure you check to see what kind of fee works with your family’s specific budget.
- Annual Credits and Benefits
One of the things that can reduce the impact of an annual fee somewhat is annual credits and benefits. For example, if you have a travel credit card that has a $100 annual fee, but also gives you a $50 hotel credit every year, the fee is essentially $50 as long as you use that credit. You need to remember to actually use these annual benefits, but if you do, it can give you plenty of value.
- Sign-On Bonus
One of the most common ways for credit card companies to convince someone to invest in a new credit card is with sign-on bonuses. Typically, this comes in the form of a number of points added to your account when you make a certain dollar amount of purchases; the Southwest credit card bonus, for example, is a whopping 100,000, worth around $1,400 in Southwest flights.
- General Cardholder Benefits
Lastly, it’s also a good idea to look at the general benefits that you receive as a cardholder. Typically, these are benefits that apply on every trip you take or every purchase you make, and don’t have to “refresh” at the end of the year. You may get extended warranty protection, trip protection, lost luggage protection, and more. More high-end cards may give you better general benefits, which may include regular upgrades and better opportunities when you take trips.
A travel credit card can be an incredibly effective tool if you really love to travel. Many people put a lot of their daily expenses on a travel credit card, which allows them to then rack up points that they can redeem for their travel expenses. This is how a lot of people are able to travel regularly, even if they don’t seem to have the budget for it. As long as you’re paying attention to these four things, you can make sure you choose a travel credit card that works for you.